Bitcoin Core’s Methodical Development Fuels Innovation in the Crypto Ecosystem
The Bitcoin ecosystem’s venture capital (VC) scene is thriving, with significant growth in seed transactions and total companies funded. Despite the narrative that “nothing is happening on Bitcoin,” innovation across the Bitcoin stack has actually been accelerating. However, there is a misallocation of capital, with just 1.31% of total crypto venture funding invested in Bitcoin startups.
Key Points:
– Bitcoin VC grew by 52.9% year-over-year, while crypto VC stagnated.
– The conservative approach to making changes in Bitcoin Core has led to misconceptions about its development.
– Methodical development has paved the way for significant innovations, such as the Lightning Network and Taproot.
– The Lightning Network’s capacity has unleashed a wave of innovation, including Lightning Labs’ Taproot Assets Protocol (TAP) for asset issuance.
– As the composability on the Bitcoin stack expands, more entrepreneurs will choose to build their businesses on Bitcoin due to its security, decentralization, and maturity.
Hot Take:
While the methodical development of Bitcoin Core may give the impression that “nothing is happening on Bitcoin,” the reality is quite the opposite. Innovation is thriving, and as the ecosystem matures, more entrepreneurs will recognize the potential of building on the most secure and decentralized platform available. Don’t underestimate the power of Bitcoin in shaping the future of the internet of money.
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